Oklahoma’s Farm Economy Falls Behind Surrounding States

FOR IMMEDIATE RELEASE
June 29, 2022

CONTACT: Pam Campbell

OKLAHOMA CITY- The Oklahoma City Branch of the Federal Reserve of Kansas City released its latest issue of the quarterly publication the Oklahoma Economist, titled “Oklahoma Ag Economy Diverges from Surrounding States.”

The farm economy in Oklahoma generally has remained solid, although it has diverged negatively from surrounding states in the Tenth Federal Reserve District, according to Cortney Cowley, senior economist at the Oklahoma City Branch of the Federal Reserve Bank of Kansas City.

“Expectations for farm income and agricultural credit conditions have softened more than in other states, particularly in wheat- and cattle- producing areas affected by extreme drought,” she said. “The state received more rain in recent weeks, which could improve prospects for cattle, corn and soybean production but was too late to benefit the wheat crop.”

Cowley said drought has disproportionately affected large portions of Oklahoma, reducing production potential for wheat, and putting additional inflationary pressure on feed costs for cattle producers.

“Also, some of the areas with the highest need for precipitation remained dry,” she said. “As of the second week in June, more than 40% of the state was still in some level of drought. Moving forward, severe drought and higher production expenses could continue to disproportionately dampen the outlook in Oklahoma compared with other states in the region.” The complete issue is available at External Linkwww.kansascityfed.org/oklahomacity/oklahoma-economist.

The Federal Reserve Bank of Kansas City serves the Tenth Federal Reserve District, encompassing the western third of Missouri; all of Kansas, Colorado, Nebraska, Oklahoma and Wyoming; and the northern half of New Mexico. As part of the nation’s central bank, the Bank participates in setting national monetary policy, supervising and regulating numerous commercial banks and bank holding companies, and providing financial services to depository institutions. More information is available online at External Linkwww.kansascityfed.org.